The job market remained firm during March. Nonfarm payrolls increased 215,000
(2.0% y/y) following a 245,000 February increase, earlier reported a 242,000. A
200,000 increase had been expected in the Action Economics Forecast Survey.
During the last three months, payrolls rose at a 1.8% annual rate. The
unemployment rate increased to 5.0% following two months at 4.9%. A 4.9% rate
had been expected. The overall unemployment rate including marginally attached
workers and those working part-time for economic reasons notched up to 9.8%,
about where it has been since October. Average hourly earnings rose 0.3% (2.3%
y/y) after an unrevised 0.1% dip. A 0.2% increase had been expected.

From the payroll employment survey, the 215,000 increase extended the
moderate trend rate of improvement during the economic expansion. Strength last
month was again exhibited by the construction sector's 37,000 increase (4.7%
y/y), the strongest gain in three months. To the downside, however, were factory
sector payrolls which fell 29,000 (-0.2% y/y). The decline reflected widespread
negative readings in both the durable and nondurable goods sectors. Also
continuing lower were mining sector payrolls. The 12,400 worker decline (-17.1%
y/y) continued the trend in place since October 2014.

Hiring in the private service sector continued to power the job market. The
199,000 gain (2.6% y/y) was in line with this year's average, though it was down
from the monthly gains in the second half of last year. Retail trade employment
increased 47,700 (2.4% y/y) after even stronger growth in the prior two months.
Health care payrolls strengthened 44,000 (3.5% y/y) while employment in the
leisure & hospitality industry increased a steady 40,000 (3.1% y/y). The
professional & business sector added 33,000 workers (3.1% y/y), but that was
below the growth logged during most of the economic expansion. Temporary help
employment posted a weak 4,000 increase (1.9% y/y) following two months of
decline. Employment in the financial industry improved 15,000 (1.8% y/y). Jobs
in education gained 7,400 (1.9% y/y), and in the wholesale trade sector they
rose 5,000 (1.0% y/y). In the information sector, employment ticked only 1,000
higher (1.4% y/y), and transportation & warehousing employment eased 2,500
(+1.1% y/y), the second decline in three months. Government sector employment
increased 20,000 (0.6% y/y), the strongest rise since August. This strength
reflected a 19,000 increase (0.7% y/y) in local government hiring. Federal
government jobs rose 2,000 (0.8% y/y) but the number of state government jobs
fell 1,000 (+0.1% y/y), the fifth decline in as many months.

The length of the average workweek held steady m/m at 34.4 hours following a
decline from 34.6 hours in January. The factory sector workweek eased m/m to
40.6 hours, down from the 41.1 hour peak in November 2014. Construction hours
declined to 38.7, down from 39.6 three months ago. Private service sector hours
held steady at 33.3, down slightly from last year's peak.

Aggregate hours worked (employment times hours) improved 0.2% last month and
1.9% y/y. They rose at a steady 1.8% annual rate during Q1.

From the household jobs survey, the unemployment rate's up-tick to
5.0% left it equal to the Q4'15 average. Employment rose 246,000 (2.0%
y/y) and the labor force increased 396,000. A better job market is encouraging
reentry into the labor market. Labor force growth of 1.5% y/y is the strongest
since early 2007. As a result, with population growth of 1.1% y/y, the labor
force participation rate rose to 63.0% last month, the highest level since March 2014.

The average duration of unemployment eased to 28.4 weeks after rising to 29.0
weeks in February. That was up from a cycle low of 26.3 weeks, six months ago.
Long-term unemployment has been reduced. The number of persons out of work for
52 weeks more is down 15.0% y/y, and by roughly two-thirds from the 2011 peak.

Education matters when it comes to unemployment. For those with less than a
high school diploma, the unemployment rate of 7.4% compared to 5.4% for high
school graduates, but no college. For individuals with some college or an
associate degree, unemployment averaged 4.1%, but for college graduates it was 2.6%.

The labor market data is contained Haver's USECON database. Detailed
figures are in the EMPL and LABOR databases. The expectations
figure is in the AS1REPNA database.